re: what a joke...but then this
Copper ripe for 50pc rise
May 30, 2006
COPPER prices in London may increase by as much as 50 per cent in the next year as global demand from hedge funds and cablemakers outstrips supply, according to Sucden UK, which trades on the London Metal Exchange. Prices of the metal have surged 87 per cent this year, and reached a record $8800 a tonne on May 11, as hedge and pension funds poured money into commodities in pursuit of higher returns than those offered by stocks and bonds. Global supply might not rise quickly enough to meet demand, Jeremy Goldwyn, global head of industrial commodities at Sucden, said in Shanghai yesterday.
"Many pension and mutual funds see commodities as a natural home for three to five per cent of their money," Mr Goldwyn told a futures conference. "They have a massive influence on the price and use commodities as a hedge for their traditional investments" such as stocks and bonds. Sucden is one of 11 companies that trade on the floor of the LME, the world's biggest metals bourse.
Economic growth in the US and Europe meant the high copper price had not eroded demand, he said.
Mr Goldwyn said "we don't feel there's a great deal of demand destruction" from the high prices.
"We certainly would not be surprised to see copper at $9000, $10,000 or $12,000 in the next six, nine or 12 months."
Bloomberg
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